The Compensation Act 2006, which became law at the end of July, includes two provisions intended to address concerns about "compensation culture."
In cases in England and Wales involving allegations of negligence (or breach of statutory duty) the courts are now permitted to take into account the deterrent effect of potential liability. In particular, the court can consider whether a finding that a defendant should have taken certain steps might in future prevent desirable activities from taking place (or being carried out in a particular way) or discourage persons from undertaking functions in connection with desirable activities.
A second provision of the new Act clarifies, rather than changes, the law in a way that is meant to promote less adversarial approach to accidents and injuries. It provides that an apology, an offer of treatment or other redress shall not amount to an admission of liability.
